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Time-bar clause in construction contract defeated by estoppel | White & Case LLP


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Estoppel and waiver are common arguments used to rebut the enforcement of time bar and notice provisions in construction contracts. However, these arguments have often seen limited success. Nevertheless, estoppel was successfully argued in a recent Australian case in the New South Wales Court of Appeal.
Introduction
In brief summary, estoppel arises where party A leads party B to assume (through its words or actions) that a particular state of affairs exists between them or will exist, and in reliance on that assumption party B acts or refrains from acting. Party A may then be prevented from going back on its words or conduct that led party B to act on that basis. Waiver, a separate but related doctrine, refers to an act by one of the parties, having knowledge of the relevant facts, whereby that party abandons its legal right (such as a contractual right) by acting in a manner that is inconsistent with that r ....

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